Rachel Reeves has sparked fresh tax hike fears after refusing to rule out breaking a major Labour manifesto promise in the upcoming Budget.
Ahead of the election last year, Sir Keir Starmer and Ms Reeves promised not to raise taxes on “working people”.
However, there is speculation the Government is considering a tax rise later this year to bring in money.
When asked directly by Times Radio whether she had any plans to increase VAT, the Chancellor said: “I am being clear. We made those commitments in the manifesto, and those manifesto commitments stand.
“We went through all of this in the general election 15 months ago where people said ‘are you going to rule this out? Are you going to do this?’
“We made those commitments in the manifesto. We were elected on those manifesto commitments, and those manifesto commitments stand because I want to make working people better off.
“Judge me on my record, because last year at the budget people said, ‘Oh you’re not going to be able to honour your manifesto commitments’, well we did increase taxes in the budget last year, but without hitting the payslips of ordinary working people.”
It comes as the Prime Minister also failed to rule out whether the Government will break the promise over fresh fears Labour will have to find £30billion at then Budget.
Ms Reeves is awaiting the first official forecasts from the budget watchdog on the state of the economy which the Treasury is expected to receive later this week.
The Office for Budget Responsibility (OBR) is set to warn Ms Reeves that she will have to find about £30billion in further revenues or savings as a result of higher borrowing costs, as well as policy U-turns and forecasted future economic growth.
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James Murray: Reform UK's migrant policy goes 'too far'
James Murray MP speaking to GB News on Monday
|GB NEWS
The Chief Secretary to the Treasury has claimed Reform UK's policy on migration has gone "too far", saying it was down to fairness.
"Let's be really clear ... their policy would mean that people in Britain who maybe have family here ... working for many years, maybe set up a business ... they would be taken out of the community and not allowed to continue as part of our country," he said.
"I think people have a sense of fairness in this country, people want a much firmer approach to migration, and that's what we're doing."
Mr Murray said people know when "ideas go too far" and that is what "they saw in Reform".
James Murray MP defends Prime Minister's stance on Reform's 'racist' policy
Chief Secretary to the Treasury, James Murray MP, has told GB News that he believes Sir Keir Starmer was saying "the policy itself is racist, and immoral and unworkable".
"What he was saying is that ... we need to have a way at tackling ... immigration which has been too high in this country," Mr Murray said.
"We obviously need to tackle the huge asylum backlog, but we need proposals that are workable."
Mr Murray said Labour was attacking the issue "from every possible angle" to "bring down the level of migration".
Chris Philp: Keir Starmer 'completely wrong' to dismiss border control as racist
Chris Philp criticised Sir Keir Starmer on GB News on Monday morning
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Shadow Home Secretary Chris Philp has told GB News that "there is nothing racist at all about wanting to control our borders".
"It says a lot about Keir Starmer that he dismisses border control plans in that way," he said.
"He was completely wrong ... to use that word."
Mr Philp said that Labour's border control was "extremely weak".
"Just on Saturday, a couple of days ago, they let in ... 895 illegal immigrants," he said.
Labour to expand ‘intensive supervision courts’ to tackle reoffending
David Lammy is expected to make the announcement on Monday
|PA
Deputy Prime Minister and Justice Secretary David Lammy has promised "smarter justice" as he announced plans to expand new sentenced which are aimed at tackling the root causes of crime.
Mr Lammy is expected to announce the expansion of "intensive supervision courts" on Monday at Labour's annual conference in Liverpool.
Unlike normal courts, the intensive supervision courts will see criminals with a history of repeated short sentences, substance abuse, or other complex needs brought back before the same judge to track their progress.
The scheme has already been piloted in areas, including Liverpool.
Young people will have benefits scrapped if they refuse job offers
Young people will have their benefits scrapped if they refuse job offers or training under new plans set to be revealed by Rachel Reeves.
The Chancellor is also expected to pledge to end long-term youth unemployment by guaranteeing any young person paid work if they have been unable to find a job or training for at least 18 months.
The "youth guarantee" will see thousands of young people who are unemployed or unable to work due to sickness offered help by authorities.
However, if this is refused, their benefits could be cut.
Andy Burnham challenges Keir Starmer over allowing ‘climate of fear’ in Labour
The Greater Manchester Mayor has accused the Prime Minister of allowing a "climate of fear" in the Labour Party.
It's a fresh attack from Andy Burnham on Sir Keir Starmer on the first day of the party's conference in Liverpool.
The Mayor said debate over climate was being "closed down" within the party and claimed the leadership had been "narrow and shallow" on the topic.
Mr Burnham refused to rule out a future campaign to challenge Sir Keir's leadership
He added that people who wanted him to show loyalty to Sir Keir did not properly understand the challenge the Government was facing.